Gaming ETFs on brink of boom as new Playstation, Xbox near debut

With pre-orders for Sony’s Playstation 5 and Microsoft’s Xbox X Series sold out almost everywhere before their November release, video-game ETFs are ripe for a boom. 

The supply-chain constraints coupled with high demand shows “this console cycle is going to benefit mostly all of the videogame companies,” according to Pedro Palandrani, an analyst at Global X Management Company. HERO, an exchange-traded fund managed by Global X, has surged almost 70 per cent this year. But the recent volatility and sideways-trading over the past month or so suggest there needs to be a new catalyst to extend the rally.

Palandrani sees upside stemming